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Russia and Ukraine to meet in Turkey

Wednesday 9 March, 2022

Daily Currency Update

The ongoing crisis in Ukraine continues to have an impact on financial markets. Investors continue to worry about the long term impact on the economy across Europe, while also accounting for surging commodity prices. Therefore the pound could remain supported vs the euro and some other main European currencies. However, the UK economy could be affected slightly longer term leaving the pound vulnerable and weaker against the US dollar. This morning however GBP/USD showed some toughness below the 1.31 mark and has pushed up through the 1.31 handle again. This is after it hit near 16 month lows on Tuesday. This has been caused in part by a more upbeat tone around equity markets.

Key Movers

Yesterday President Zelensky commented that Ukraine will no longer seek to become a member of NATO. Further to this there will be a meeting between Ukrainian and Russian foreign ministers in Turkey on Thursday, and Russia also claimed that it will no longer seek regime in Kyiv. This helped to stabilise the mood in financial markets and boosted investors’ confidence – in turn driving investment away from safe-haven assets such as the US dollar and gold. With a European Central Bank meeting, Russian and Ukrainian officials meeting in Turkey, and also a US CPI release tomorrow, we will likely see the EUR/USD pair consolidate up until then. It currently sits at around 1.0945.

Expected Ranges

  • GBP/USD: 1.3065 - 1.3175 ▲
  • GBP/EUR: 1.1965 - 1.2070 ▼
  • GBP/AUD: 1.7905 - 1.8040 ▼
  • EUR/USD: 1.0895 - 1.1010 ▲